• Qatar Investment Authority plans to sell USD 360M stake in Sainsbury’s, reducing its holding from 10.5% to 6.82%.
• The sovereign wealth fund has been a shareholder since 2007 and previously sold USD 400 million worth of shares in 2024.
• Sainsbury’s shares rose 19% this year as British shoppers focused on value, boosting demand for affordable supermarket options.

QIA

The Qatar Investment Authority (QIA) plans to sell a stake worth USD 360 million (GBP 273M) in  J Sainsbury Plc. The authority plans to sell up to USD 83.6 million shares in the supermarket. 

The sovereign wealth fund also entered into a derivatives agreement with JPMorgan. This agreement stipulates that the bank will sell a further 14 million shares. The value of the stake sale is based on Monday’s closing price of around USD 4.30 (GBP3.26) a share.

The share sale comes after Sainsbury’s shares rose 19% this year. This was because shoppers are prioritizing affordable options due to British customers’ focus on value for money.

Sainsburys

The sovereign wealth fund has been a Sainsbury’s shareholder since 2007, during which it held a 25% stake. However, it started selling its shares in 2021. In October of last year, the fund decreased its holding by around 5% which was valued at around USD 400 million.

 It currently holds 239.4 million shares in the supermarket chain, representing a 10.5% stake. Once the deal closes, Qatar will no longer be Sainsbury’s largest shareholder, reducing its stake to 6.82%. Moreover, it will become the fourth largest shareholder in the supermarket chain.Bottom line: The QIA’s reduced stake signals a shift in Sainsbury’s shareholder structure, ending its position as the largest investor. Once the deal closes, Qatar will become the supermarket’s fourth largest shareholder, holding a 6.82% stake.